After weeks of checking for IRS Tax Refund Status, many people are unsurprised that the average tax refund is significantly lower than a year ago. (Photo: CapWay)
After weeks of checking for IRS Tax Refund Status, many people are unsurprised that the average tax refund is significantly lower than a year ago.
The average refund for early filers whose returns were processed by the Internal Revenue Service through February 24 was $3,079, a decrease of 11.3% from the previous year. This is based on the most recent IRS data published online on Friday.
Surprisingly, the IRS has issued approximately 5.4 million more refunds than last year — an increase of 18.2% — during the first five weeks of the tax season.
READ ALSO: 2023 IRS Tax Refund Calendar – Here’s What You Need To Know
What’s the IRS Tax Refund Status?
When does refund money arrive in bank accounts? Every business day, Monday through Friday, tax refunds are deposited into your bank account via direct deposit. However, this does not apply on weekends or holidays.
A refund check could also arrive in the mail on a Saturday.
Checking your IRS Tax Refund Status will let you see if you will receive your refund via direct deposit; check with your bank to know when the money will be available in your account, as this varies by bank.
A federal income tax refund via direct deposit can take up to 21 days to arrive. However, refunds for e-filed returns are frequently issued in less time.
Why are Refunds Getting Smaller?
Many people will be disappointed to see a smaller refund, even if they were aware of the possibility.
Refunds are down for many filers because the generous Advance Child Tax Credit and the recovery rebate credit will be eliminated on 2022 returns.
Update on the IRS Tax Refund Status
After a few rough years since the pandemic began in 2020, the IRS processing system faced massive delays and a significant backlog of returns.
The IRS was expected to be in better shape to handle the tax season at the start of this year’s tax season, which began on January 23 when the IRS began processing e-filed returns.
The IRS was given nearly $80 billion over ten years under the Inflation Reduction Act, passed in August. Treasury Secretary Janet Yellen’s priorities for the IRS included reducing the backlog of tax returns, improving customer service, modernizing technology, and hiring more employees.
The IRS previously stated that most Earned Income Tax Credit and Additional Child Tax Credit refunds would be available in taxpayer bank accounts or on debit cards by February 28 if taxpayers filed early, chose direct deposit, and had no other issues with their tax return.
READ ALSO: Will You Receive Your Tax Refund in Within 21 Days? Here’s What IRS Says!
